Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Taxes and Equity Income



	Years Ended December 31,
	2019		2018		2017
U.S. income	$	3,826	$	4,433	$	8,399
Non-U.S. income	2,342		1,953		1,332
Income before income taxes and equity income	$	6,168	$	6,386	$	9,731

Schedule of Components of Income Tax Expense (Benefit)



	Years Ended December 31,
	2019			2018			2017
Current income tax expense (benefit)
U.S. federal	$	42		$	(104	)	$	18
U.S. state and local	102			113			83
Non-U.S.	758			577			552
Total current income tax expense	902			586			653
Deferred income tax expense (benefit)
U.S. federal	(145		)	(578		)	7,831
U.S. state and local	3			250			(187		)
Non-U.S.	9			216			3,236
Total deferred income tax expense (benefit)	(133		)	(112		)	10,880
Total income tax expense	$	769		$	474		$	11,533

Schedule of Effective Income Tax Rate Reconciliation



	Years Ended December 31,
	2019			2018			2017
Income tax expense at U.S. federal statutory income tax rate	$	1,295		$	1,341		$	3,406
State and local tax expense (benefit)	117			282			(76		)
Non-U.S. income taxed at other than the U.S. federal statutory tax rate	166			90			(145		)
U.S. tax impact on Non-U.S. income and activities	(197		)	(822		)	(941		)
Change in valuation allowances	(233		)	1,695			2,712
Change in tax laws	(122		)	(134		)	7,194
General business credits and manufacturing incentives	(420		)	(695		)	(428		)
Capital loss expiration	—			107			—
Settlements of prior year tax matters	—			(188		)	(256		)
Realization of basis differences in affiliates	—			(59		)	—
German statutory approval of net operating losses	—			(990		)	—
Foreign currency remeasurement	74			19			23
Other adjustments	89			(172		)	44
Total income tax expense	$	769		$	474		$	11,533

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:



	December 31, 2019			December 31, 2018
Deferred tax assets
Postretirement benefits other than pensions	$	1,695		$	1,584
Pension and other employee benefit plans	2,968			3,020
Warranties, dealer and customer allowances, claims and discounts	6,299			6,307
U.S. capitalized research expenditures	6,035			5,176
U.S. operating loss and tax credit carryforwards(a)	8,686			8,591
Non-U.S. operating loss and tax credit carryforwards(b)	6,731			6,393
Miscellaneous	1,965			2,034
Total deferred tax assets before valuation allowances	34,379			33,105
Less: valuation allowances	(8,135		)	(7,976		)
Total deferred tax assets	26,244			25,129
Deferred tax liabilities
Property, plant and equipment	1,565			1,098
Intangible assets	763			729
Total deferred tax liabilities	2,328			1,827
Net deferred tax assets	$	23,916		$	23,302

_________


(a)	At December 31, 2019 U.S. operating loss and tax credit carryforwards of $8.7 billion expire by 2039 if not utilized.

(b)

At December 31, 2019 Non-U.S. operating loss and tax credit carryforwards of $1.3 billion expire by 2039 if not utilized and the remaining balance of $5.4 billion may be carried forward indefinitely.

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes activity of the total amounts of unrecognized tax benefits:



	Years Ended December 31,
	2019			2018			2017
Balance at beginning of period	$	1,341		$	1,557		$	1,182
Additions to current year tax positions	18			292			160
Additions to prior years' tax positions	13			264			448
Reductions to prior years' tax positions	(501		)	(244		)	(195		)
Reductions in tax positions due to lapse of statutory limitations	(8		)	(38		)	(44		)
Settlements	(93		)	(450		)	(11		)
Other	5			(40		)	17
Balance at end of period	$	775		$	1,341		$	1,557